Business space and urban development player Ascendas-Singbridge Group has reportedly inked a contract of sale for the acquisition of the landmark 66 Goulburn Street property. The contract has been made with the GDI Property Group and this iconic commercial A-grade structure in the Sydney CBD (Central Business District) will be acquired for a sum of A$252 million (equivalent to approximately S$270 million).
The property comes with available area of close to 22, 890 sq. m across 24 levels along with a ground floor, 53 parking spaces in the basement and ample retail space as well. The building is located strategically at the northwestern corner of the Castlereagh and Goulburn Streets and can be accessed easily through public transportation facilities. The building is already home to several legal firms, financial services companies and other government organizations.
According to the Head of Real Estate Funds and Chief Investment Officer at Ascendas-Singbridge, Jonathan Yap, the acquisition of the 100 Arthur Street property in North Sydney last year paved the way for more opportunities to expand the company’s commercial real estate portfolio in Australia. This building comes with an average lease expiry profile that is long-weighted along with having good tenants as well.
This makes for a viable investment proposition on account of the removal of office supply in the midtown precinct on account of several residential conversions by developers in tandem with the limited supply of new office space across the entire Sydney CBD over the next few years at least. As a result, overall rental growth in the market should remain healthy in the near future along with lowered rental incentives according to him.